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Chula Vista projects $3.9 million general-fund shortfall; council approves second-quarter adjustments
Summary
Finance staff told the council revenues are forecast about $3.9 million below the amended general fund budget (property tax and transient-occupancy tax declines), and council approved a package of amendments and acceptance of prior-year police donations.
City finance staff presented the second-quarter financial report for the quarter ended Dec. 31, 2025, and recommended a set of budget adjustments that the council approved on March 17.
Sarah Shane, director of finance, and budget manager Ed Prendell said staff now projects general fund revenues about $3.9 million under the amended budget. The largest contributors are an anticipated $3.1 million shortfall in property tax revenues (linked to a slowdown in home sales) and about $3.4 million in lower transient-occupancy tax (reduced travel and hotel stays), partially offset by roughly $800,000 of higher franchise and property-tax-in-lieu receipts.
Staff also identified expenditure changes: personnel-service increases (including roughly $900,000 related to fire strike team activity during the recent fire season) and recommended adjustments to non-personnel spending in public works, parks, capital projects and trust funds. Maritza Vargas summarized recommended appropriations and noted certain capital projects and park-benefit-fee expenditures (for example, increased CIP non-personnel expenditures of about $2.6 million and $1.0 million from park-benefit fees for Eucalyptus Park).
The council approved the recommended amendments and accepted police donations totaling $182,953.90 for public-safety equipment (drones, iPads and related hardware), which staff said will have no fiscal-year impact for FY25-26 because they were received in prior years.
Staff said the budget-development calendar continues: proposed budget presentations are scheduled for May 5 (proposed) and May 19 (second hearing), with public workshops in mid-April.
